January 5, 2017

On Dec. 15, New Yorkers for Clean Power and the NY
Geothermal Energy Organization delivered a letter to Governor Cuomo calling on
him to include a 25 percent tax credit for geothermal installations in his
upcoming state budget. In November, the Governor had vetoed a geothermal tax
credit bill which had been passed overwhelmingly by the Legislature in June.
His veto message stated that, as a revenue impacting item, consideration of the
tax credit belongs in the budget process.

The letter to the Governor was signed by more than 160 local
elected officials, and representatives of New York businesses and environmental
organizations.

The Geothermal Tax Credit Bill A9925/S6249, as passed by the
legislature, gives a tax incentive of 25 percent up to $5,000 to homeowners and
business owners to install geothermal heat pumps, a renewable energy technology
for heating and cooling buildings.

The tax credit initiative comes at a crucial time for the
geothermal industry, which employs about 1,000 people in the state and will be
feeling the impacts from a 30 percent federal tax incentive that sunsets at the
end of this year. The solar industry has benefited from a similar state tax
incentive that has made the renewable energy source more affordable and
accessible to homeowners and businesses in the state.

Geothermal is critical to executing New York State’s
recently adopted aggressive mandate to achieve greenhouse gas reduction goals
of 40 percent by 2030, as well as the internationally-recognized target of
reducing emissions 80 percent by 2050. The New York State Energy Plan states
that 35 percent of New York’s climate damaging greenhouse gases come from
on-site combustion, primarily to heat homes and buildings.

Assembly tax credit sponsor Sean Ryan (D-Erie County) said,
“The tax credit proposal has drawn remarkably strong support from a broad
spectrum of New York businesses, environmental organizations and elected
officials. At the end of the year, the federal tax credit for geothermal energy
systems is set to expire, potentially crippling the geothermal industry in New
York. I strongly believe a significant geothermal incentive is consistent with
the state policies of reducing our reliance on carbon-based fuels and
increasing green jobs within the state. For these reasons I urge you to include
in your Executive Budget an allocation of funds for a geothermal tax
credit".

State Senator Rob Ortt (R,C,I – Niagara, Orleans and Monroe
Counties), who sponsored the tax credit bill in Senate, noted “ The geothermal
industry in New York employs 1.000 individuals, but with the impending
expiration of the federal tax credit, layoffs are already under consideration
among the larger installers. Smaller operators are facing the possibility of
permanent closure. A strong measure in your budget is needed to continue the
momentum this renewable industry has been building in New York State. In
addition to protecting our environment for future generations, a geothermal tax
credit helps protect and create local jobs and helps reduce costs for financially-strapped
energy customers.”

"Renewable heating & cooling technologies like
geothermal are critical to reaching New York's 40 percent greenhouse gas
reduction goal by 2030,” said, Renee Vogelsang, Campaign Coordinator with New
Yorkers for Clean Power. “We applaud the New York State legislature for taking
bold leadership in passing Bill A9925/S6249 for a geothermal tax credit similar
to what is currently available for solar energy in the state. We call on
Governor Cuomo to continue to lead the way in fighting climate change and
supporting clean jobs by including these provisions in his upcoming budget.”

John Ciovacco, President Aztech Geothermal, Ballston Spa, NY stated “Aztech
is Capital District’s leading company in the design and installation of geothermal
heat pump systems. In recent years we have created good paying jobs for
our employees and a network of subcontractors. With the federal tax credit
unlikely to be extended past the end of the year, our company is facing very
uncertain times. We urge the Governor to include a NYS geothermal tax credit in
the budget, thus allowing companies like ours across the state to set the
foundation for greenhouse gas reductions in buildings.”

"On behalf of Elected Officials to Protect New York, we
applaud Governor Cuomo's leadership and support for the transition to clean
energy. Geothermal energy is an important component of this transition.
It puts money towards good-paying jobs that cannot be outsourced, instead of
out of state fossil fuels,” said Greg Young with Elected Officials to Protect
New York.

Joanne Coons is the Capital Region leader of the NY Solar
Energy Society. She said “I am a homeowner with a geothermal heating and
cooling system. I feel good that I do not contribute to our carbon based fossil
fuel problems. By including a geo tax credit in his budget the Governor will
provide more opportunity for people to replace their heating and cooling with
non carbon solutions that address our climate change problem.”

Geothermal heating and cooling is key to cutting fossil fuel
use and helping New York State reach its greenhouse gas reduction goals. I’m
proud to be a New Yorker, living in a state whose Governor remains committed to
facing the challenge of climate change head on even while Washington is being
taken over by politicians who are afraid of science. Governor Cuomo — help us
be ready to boost your administration's heating and cooling initiative by
including the NY Tax Credit in your budget and protecting 1,000 good paying New
York jobs in the process.